Methods of accounting for inflation
- 1 — Associate Professor G.V. Plekhanov Saint Petersburg State Mining Institute
- 2 — Student G.V. Plekhanov Saint Petersburg State Mining Institute
Abstract
The article considers a number of problems associated with accounting and reporting under inflation conditions. The necessity of reflection of inflationary processes in accounting is substantiated, methods of bringing data for different periods of time into a comparable form and methods of revaluation of assets and liabilities items of the balance sheet by the inflation level used in the world practice are described. Particular attention is paid to accounting models in constant prices, current prices and the combined method. Possibilities of application of these methods under certain conditions are evaluated. The methods of adjusting the balance sheet and the profit and loss statement, provided by the current international standards of financial reporting, are disclosed. An analysis is given of domestic experience in reflecting inflation in accounting in comparison with the practice of revaluation in other countries, in particular the main methods of revaluation of balance sheet items used in Russia. The principles of inflation accounting in our country at the present stage are formulated, their efficiency is evaluated.